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Downside is your market can take a hit if the market owner is at war (with convoys being sunk), or if they kick you out.
Positive is you can leave whenever, just make sure you have a base industry prepped to support your shifted demand.
As the US, you would have access to most resources so it is likely not worth it.
Actually Trade Agreements do this-- remove all tariffs and bureaucratic overhead.
Customs unions merge markets.
The junior member joins the customs leader's market. In the OP example there would no longer be any US market but a larger French one the US a member of. So yes, no tariffs because its all the same market, but a huge difference to a simple Trade Agreement.
My bad on the mix up, it was the other way around in my head. - Edited.
Small question doesn't joining other markets increase demand and thus price of certain goods for example if i play a big oil producer and join the british market and the british have a large demand for oil dont i sell my oil for alot more? And so make more money?
IF France is a Great Power, your highest possible standing will be Major Power. A Country like the USA should be planning/expecting to become a Great Power as well, and being in a CU with anyone will not allow that.
IF they have access to a lot of consumer goods and luxury goods, that you have little or no access to, then joining their CU gets you access to them.
IF there are only a small number of types of goods being traded between you, you do not need the CU and just use normal Trade where tariffs are allowed, which make you more money, or a Trade Agreement where their are no Tariffs.
A bigger reason to consider a CU is that it is another step towards continuing to improve your relations with them. If you want a Defense Pact with them and/or French support in Diplomatic Plays (potential Wars) that involve you, then a CU with France makes more sense. BUT that means YOU will be supporting France in their DPs also, if you want to keep those good relations with them.
Are you selling a lot of one or two resources or goods to them? If you are NOT in a CU or do not have a Trade Agreement with them, you can levy Export Tariffs on those Resource or Goods and make even more money.
added: In your case of a USA that controls as much as you do. NO do not join France's CU, instead YOU should be inviting small countries around the World (particularly in Central+South America) that have useful resources, to Join YOUR CU, i.e. the CU of the USA.
If you are in a CU, is there a way to see for each products, what is the demand and supply of your own market to kinda prepare to leave the CU?
Tried and true method is save the game --> Leave the union to see what your mess is, and if it is bad take note of the issue then reload the save.
Other then that, also make sure that you have a large natural resource industry, paper(for government admin), ports (for your convoys) and admin capacity. Then start importing your shortfall materials and exporting your surpluses.
There will more then likely be some short term pain for your economy but then you get the option to create your own customs union. So prep may also involve getting good relations and obligations to try pulling countries into your new union.
Their most useful ability is probably that you are gifted 50 % convoys of subject CU members (which means you don't have to fund as many costly ports early on). Smaller nations get a (probably) defensive overlord that they can opt out of and access to niche goods that are costly to self produce (engines, weapons, ammunition, explosives). Oh I guess its occasionally useful for diplomatically protecterating nations. (its -10 reason if you are not in a CU).
I haven't tried enough small nations to see if they're useful (Korea is tributary and thus has no choice, it would probably prefer to just be independent and tariff trade routes with Qing if it could). But I don't see them being useful on stuff like Sweden, Brazil/Mexico, Portugal or other medium sized nations. Their economies are simply too large. Maybe challengingly small nations with under 4 states find them more useful.
The US that controls North America is almost certainly not one of those countries.